The shutdown of boutiques worldwide has inflicted a £245 million hit on Burberry, wiping out two thirds of its profits and resulting in its final dividend being scrapped.

The British luxury fashion group said yesterday that 60 per cent of its shops had been closed as a result of the coronavirus outbreak, dragging its sales 27 per cent lower in the three months to the end of March.

The FTSE 100 company, which was founded in 1856 by Thomas Burberry, who created the gabardine waterproof fabric used in its famous trench coats, has 421 shops, including concessions.

The pandemic has resulted in a £68 million hit on stock provisions and a £157 million writedown on the value of its shops as the outbreak has dampened